Young working woman's view: This is the strangest SUV I have ever driven. It just does not feel or act like a SUV. Sure, you have the higher seating position and the boxy look common to all of them, but it has sharp handling, is so effortless to park in tight spots it should be knighted for this feature, the steering is precise, and the suspension well controlled.
Maybe a little bit too well controlled because it does get stern over rough roads.
I found myself totally forgetting what I was driving as I was able to maneuver as if I was in a sedan, and a sporty one at that. The down side was the lack of low-end power.
My friends asked me a couple of tough questions about the X3 that you need to consider before buying. The first was if the solid ride would not get tiring after a while. The second was whether or not you were paying more for the name than you should. To answer the first question, I liked driving the X3, but those in the backseat complained about the ride over rough roads.
Secondly, as for paying for the name, the answer is yes. This is not an attractive vehicle and without the BMW name it would probably be ignored by the majority of the public until the price came down. However, after wheeling the X3 through a variety of daily tasks and a trip to the mountains, I can tell you it is worth every cent. Of course, I would have liked some extra features such as a less Spartan interior, a rear cargo net, a much better radio antenna, tires that are less noisy, more cupholders, a garage door opener, and a front console that you can open without being double-jointed.
The interior has some very unique ideas. The X3 features rear seatbacks that fold fairly flat without having to remove the headrests or the lower cushion. There are small and useful storage nets in the front seats and rear sections. The rear seat back also has a pass through and divides so you can carry long objects by just sacrificing seating for one person. We had the optional cargo floor rails that can be used to tie down bicycles and other heavy objects. It reminded me of a similar feature on the Saab wagons. As a reminder, a friend of mine was carrying the base of a concrete bird feeder in her car when it was rear-ended. She was okay, just a snore neck, but the bird feeder base went through the backseat of her sedan and would have severely injured anyone riding there. So don't think these tie-downs are needless features.
Working, college attending young male's view: Hey, Mom, they shrunk the X5! Yep, that was my reaction to this BMW. But even thought it was smaller it really wasn't. (This is what happens when you take two philosophy courses in a row.) The X3's 71 cubic feet of cargo volume is larger than the X5's despite the X3 being smaller outside. The major difference between the two is the weight; the X5 is about 650 pounds heavier, and the height where the X3 is about two inches shorter.
There is plenty of front headroom, the sunroof provides an airy feeling when opened, but there is barely enough legroom in back for large people either vertically or horizontally. The place to be in the X3 is the driver's seat.